Controls technology company Proserv announced Wednesday it has sold its Coatbridge, Scotland based speciality machining business formerly known as KRG Industries to UK-based private investment firm GIL Investments (GIL). The exact terms of the deal are undisclosed.
The business will now trade as KRG Specialist Engineering Services Limited and will continue to operate from its current facilities, providing precision machining services to a number of diversified clients in several industries, including oil and gas. The existing management team of KRG will lead the company with Gerry Hughes as managing director.
Proserv, which undertook a strategic review of its portfolio, said third party machining services no longer complemented the firm’s core offering, so a sale process was activated last year.
Davis Larssen, chief strategy officer for Proserv, stated, “The Coatbridge business was acquired at a time when Proserv was investing in bringing an alternative subsea tree proposition to the market. Following the industry downturn in 2015, the development plan was reviewed and changed, with this sale representing the final part of our exit from this area of the oil and gas market, enabling Proserv to focus exclusively on its core controls technology.
“The essential attributes of the Coatbridge business remain exceptionally strong and it was recognized that the business is set up to achieve its ambitions under new ownership.”
GIL acquires controlling stakes in businesses and aims to support their growth over the long-term. It has a particular specialism in manufacturing and industrial enterprises and it now possesses a portfolio of 14 companies with a combined turnover of more than £400 million.
Les Litwinowicz, CEO of GIL Investments, said, “KRG has a 40-year track record of working with its customers to deliver technologically demanding solutions for their problems. We very much look forward to working with Gerry and his team to grow KRG, both in its core market and in other sectors.”